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2 October

By Amir El Araby

Category: Learn Forex

 573       133       47             

Efficient Signals from Moving Average Exponential Ribbon

Ribbons studies have recently gained excellent reputation in the field of technical analysis due to the efficiency of their signals that help defining the market directions and the reversals as well.

Drawing Ribbons lines on our charts is simpler than we think, as adding eight moving averages on the same chart instead of one or two will build the cloud.

Actually, most of trend traders are using the values between EMA 10 and EMA 80 to draw their Ribbons lines indicator on the graph as seen on the image below.

Signals from Ribbons lines:

1-   Signal for the Exponential Moving Average Ribbons is exactly the same signal as any other moving average crossover and when EMA 10 overlaps other moving averages including EMA 80 positively, it will be considered as a buy signal.

2-    Sell signal occurs when we see the bearish crossover.

3-    Ribbons assist traders to start watching the market reversal.

The aforementioned signals are explained in the chart below.

Finally, many technical analysts prefer adding 16 different values of exponential moving averages instead of 8 to get stronger signals.

Amir El Araby

Financial advisor with 18 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts).

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